1) Define globalization, outsourcing, and virtual teams and describe how these trends are changing IT project management.

Globalization is a process of collaboration and incorporation between society, businesses, and governments of diverse countries, motivated by worldwide trade and investment, and supported by information technology.

Outsourcing is an effective cost-saving approach when it’s used suitably. It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally.

A virtual team is a group of individuals who work across time, space and structural boundaries with contacts bound by webs of communication technology.

Globalization has made software industries to search for competitive benefits in terms of budget, value and flexibility in the area of software improvement. This competitiveness forces software enterprises to search in other countries. This exemplifies the traditional problems and the existing challenges of virtual teams. Virtual teams have been established with diverse operational styles, models and standards; like Onsite-Offshore teams, subcontracts, etc. Software Businesses are quickly implementing these models as it is suitable critical for them to manage and monitor the performance, quality, and efficiency of the teams.